Friends, I am Hongcai. The market over the weekend has been slow and sticky, but the information on the chart can no longer be hidden. Let’s get straight to the point: for SOL today, I lean towards it stepping down first before reaching a high. Why? Let's break it down.
News front
But interestingly, a new piece of news has popped up. A listed company is going to set up a $100 million fund specifically to play with the Solana ecosystem. This is definitely a long-term positive, indicating that big funds are increasingly recognizing SOL. But remember an old saying in the crypto world: before the good news materializes, it's about speculation; what happens after it lands? This news can ignite a fire in the short term, or it may be used for unloading; that will be crucial.
The methods of large capital entering the market are often different from what retail investors think. I'll tell you how they are different in the chat room.
Technical Analysis
The price is stuck at $125.8, neither up nor down. Above, $130 and $134 act like two mountains pressing down, especially $134, which is a previous high point, and the pressure is quite significant.
What about below? 121 is the first line of defense, and 116 is the lifeline for this wave of increase; if it drops here, the trend may change.
Now the MACD has just formed a death cross, and the volume has shrunk, indicating that there are fewer people chasing highs over the weekend, and the bullish force is taking a breather. This is like catching your breath after a sprint; can you charge directly to 134 again? Difficult.
So what should we players do now?
For the aggressive, you can test short positions near the $130-134 pressure zone with a small position. Remember, it’s just a test, so set a good stop-loss.
The more stable and appealing approach is to wait! Wait for the price to pull back near the 121 support zone, and when a stop-loss signal appears, then gradually enter long positions to catch the next rebound. This is called finding support in a downtrend and finding pressure in an uptrend; it's key to timing.
Rainbow Finance Viewpoint
The current market is a tug-of-war between bulls and bears at 125.8. I judge that the bears will take advantage of the weekend's poor liquidity to exert some force, washing out weak hands to reduce the burden for future rises. So, don’t panic and go all-in short just because of a death cross, and don’t mindlessly rush in when there is good news. The market always moves in a new direction when everyone hesitates.
Feeling a bit confused, unsure of specific points and timing? That’s right, complex market conditions require professional strategies. For example, when exactly should that $100 million fund buy and how? The market absolutely has clues.
Want to know how to seize the next more certain opportunity? Follow Rainbow Finance, I'm in the chat room. The next turning point is getting closer. Whether it’s big gains or getting slapped, it might just take a reliable reminder. I’m here, waiting for you to join.
